We’ve added the “Yesterday’s shallowest Trend Lines” indicator to our portfolio of free indicators.
Check out our free indicators section.
I always draw the shallowest trend lines from yesterday as part of my Pre-Open routine.
This piece is from my favorite trading blog “Nine Transitions”.
Unfortunately Cad (the owner) stopped blogging a couple of years ago.
The open: Trend Lines, Gap and setups
“The price action of the prior day give rise to two trend lines — the shallowest bull and the shallowest bear trend lines of the prior day. The shallowest bull trend line is drawn from the lowest point of the day and touches another point such that all the price action past the lowest point is on one side of the line. The trend line should not be concerned about the price action before the low of the prior day. The shallowest bear trend line is similar from the high of the prior day.
The price action of the current day should be expected to react to the trend lines from the prior day and then make a significant move.”
Here are a couple of examples from the current year, which show, that it really pays off to have these lines on your chart.
And here are even more: